FE Report-February 03'2012 Friday
Dhaka stocks continued its losing streak and fell further more than one per cent Thursday with turnover value hitting three-year low, as the ongoing liquidity crisis hurting investors' confidence.
On Wednesday, the country's premier bourse---the Dhaka Stock Exchange (DSE)---suffered a massive fall, pulling down the DSE benchmark index below 4,000-point mark.
However, the market opened with a positive note, gaining more than 30 points within 10 minutes. After that it experienced fluctuation several times in positive and negative zones and finally ended more than 41 points lower.
The benchmark General Index of the DSE (DGEN), the yardstick of the market, plunged 41.52 points or 1.06 per cent to close at 3,845.65.
The broader DSE All Shares Price Index (DSI) slipped 34.54 points or 1.05 per cent to close at 3,235.36. The DSE-20 blue-chip index also declined 4.0 points or 0.12 per cent to close at 3,142.94.
The market analysts said the country's overall economic situation, tightened monetary policy, lack of confidence among investors, liquidity crisis and relatively poor performance reported by some of the companies in their half yearly reports are contributing to the nonstop market fall.
Mr AB Mirza Azizul Islam, former finance adviser to the caretaker government, said the market continued to fall as the securities regulator yet to implement its announced package.
On the other hand, banks are offering higher interest rate on deposit as a result many investors are depositing their money in banks instead of investing in volatile share market, said Mr Islam.
The Securities and Exchange Commission (SEC) should identify those who are spreading rumours in the market, Mr Islam emphasised.
However, he said it is a good time to invest in the share market as overall PE (Price Earning) ratio came down to almost at 10 which is very lucrative.
It is clear that the institutional participation in the market is negligible, as fear continues to persist of further downtrend in the market, said a stock broker.
The total turnover value stood at only Tk 1.68 billion against Tk 2.70 billion in the previous session which was the lowest in three years since December 17, 2008. On December 17, 2008 it was Tk 1.09 billion.
Out of 260 issues traded, 78 advanced, 170 declined and 12 remained unchanged.
A total of 43.20 million shares changed hands on the day against 70.31 million in the previous session. The trade deals also decreased to 77, 120 against Wednesday's 104,321.
The total market capitalisation of the DSE continued to decline and stood at Tk 2,122.96 billion against Tk 2,135.24 billion in the previous session.
All sectors lost in prices on the day except telecommunications which rose by 1.92 per cent.
Among the other sectors, banks and NBFIs lost 1.0 per cent and 1.78 per cent respectively, while pharmaceuticals and fuel and power lost more than 1.0 per cent each.
Grameenphone (GP) was the top turnover leader with shares worth Tk 102.71 million changed hands.
The other turnover leaders were Beximco Limited, National Bank, United Airways, SIBL, RN Spinning, Fu-Wang Ceramics, Square Pharma, LankaBangla Finance and Aftab Automobiles.
Dhaka stocks continued its losing streak and fell further more than one per cent Thursday with turnover value hitting three-year low, as the ongoing liquidity crisis hurting investors' confidence.
On Wednesday, the country's premier bourse---the Dhaka Stock Exchange (DSE)---suffered a massive fall, pulling down the DSE benchmark index below 4,000-point mark.
However, the market opened with a positive note, gaining more than 30 points within 10 minutes. After that it experienced fluctuation several times in positive and negative zones and finally ended more than 41 points lower.
The benchmark General Index of the DSE (DGEN), the yardstick of the market, plunged 41.52 points or 1.06 per cent to close at 3,845.65.
The broader DSE All Shares Price Index (DSI) slipped 34.54 points or 1.05 per cent to close at 3,235.36. The DSE-20 blue-chip index also declined 4.0 points or 0.12 per cent to close at 3,142.94.
The market analysts said the country's overall economic situation, tightened monetary policy, lack of confidence among investors, liquidity crisis and relatively poor performance reported by some of the companies in their half yearly reports are contributing to the nonstop market fall.
Mr AB Mirza Azizul Islam, former finance adviser to the caretaker government, said the market continued to fall as the securities regulator yet to implement its announced package.
On the other hand, banks are offering higher interest rate on deposit as a result many investors are depositing their money in banks instead of investing in volatile share market, said Mr Islam.
The Securities and Exchange Commission (SEC) should identify those who are spreading rumours in the market, Mr Islam emphasised.
However, he said it is a good time to invest in the share market as overall PE (Price Earning) ratio came down to almost at 10 which is very lucrative.
It is clear that the institutional participation in the market is negligible, as fear continues to persist of further downtrend in the market, said a stock broker.
The total turnover value stood at only Tk 1.68 billion against Tk 2.70 billion in the previous session which was the lowest in three years since December 17, 2008. On December 17, 2008 it was Tk 1.09 billion.
Out of 260 issues traded, 78 advanced, 170 declined and 12 remained unchanged.
A total of 43.20 million shares changed hands on the day against 70.31 million in the previous session. The trade deals also decreased to 77, 120 against Wednesday's 104,321.
The total market capitalisation of the DSE continued to decline and stood at Tk 2,122.96 billion against Tk 2,135.24 billion in the previous session.
All sectors lost in prices on the day except telecommunications which rose by 1.92 per cent.
Among the other sectors, banks and NBFIs lost 1.0 per cent and 1.78 per cent respectively, while pharmaceuticals and fuel and power lost more than 1.0 per cent each.
Grameenphone (GP) was the top turnover leader with shares worth Tk 102.71 million changed hands.
The other turnover leaders were Beximco Limited, National Bank, United Airways, SIBL, RN Spinning, Fu-Wang Ceramics, Square Pharma, LankaBangla Finance and Aftab Automobiles.
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